Justice Centre | 19 Aitken Street
DX SX10088 | Wel ington
T 04 918 8800 |
F 04 918 8820
[email address] | www.justice.govt.nz
13 April 2023
Adam Irish
[FYI request #21813 email]
Our ref: OIA 102463
Tēnā koe Mr Irish
Official Information Act request: Preventing corruption
Thank you for your email of 13 February 2023, in which you requested, under the Of icial
Information Act 1982 (the Act), information regarding the measures taken to prevent
corruption in New Zealand's political system.
Specifically, you have requested:
Details of the measures in place to prevent corruption in the political system,
including the influence of foreign countries like the PRC.
Information on steps being taken to ensure the transparency and accountability of
political donations and financial disclosures by politicians and public officials.
Information on how the government is addressing the risk of conflicts of interest in its
political system, particularly with regards to business dealings with foreign countries.
Details on the enforcement mechanisms in place to hold politicians and public
officials accountable for their actions and prevent corruption.
Information on the government's efforts to raise public awareness about the dangers
of corruption and the importance of transparency and accountability in politics.
The government's position on international efforts to prevent corruption and promote
transparency and accountability in the political system.
The government's plans for responding to any allegations of corruption in the political
system, particularly those related to foreign influence.
As your request relates to general questions of the legal and political system, the Ministry of
Justice has consulted other public sector agencies to provide a comprehensive response. To
allow sufficient time for this broad consultation, on 07 March 2023 the Ministry extended the
timeline to respond to your request to 12 April 2023.
One of the agencies consulted, the Office of the Clerk of the House of Representatives, is
not subject to the OIA, but has offered information to support us to provide a clearer picture
of the existing protections and work underway with respect to addressing bribery and
corruption.
To avoid repetition, your request has been answered in titled sections that respond to its
various parts. Please note that in regard to your request for the Government’s position on
international efforts to prevent corruption and promote transparency and accountability in the
political system, we have no further information to provide beyond the Ministry’s previous
response of 20 December 2022, reference number: OIA - 102084.
Electoral financing
The Electoral Act 1993 imposes a $50 cap on donations from an overseas person to a
candidate or party (section 207K). Any excess overseas donation must be returned to the
overseas person (or, if this is not possible, the Electoral Commission).
Candidates and party secretaries that fail to comply with these requirements may be guilty of
an il egal or corrupt practice and can face a term of imprisonment of up to two years, or a
fine of up to $100,000, upon conviction. You can find out more about these rules on the
Electoral Commission’s website:
• elections.nz/guidance-and-rules/donations-and-loans/rules-for-party-donations-and-
loans/
Rules for elected officials
As well as the rules in the Electoral Act 1993, both the Cabinet Manual and the Standing
Orders of the House of Representatives set out rules for Ministers and other Members of
Parliament (MPs) respectively. These documents are available at:
• dpmc.govt.nz/sites/default/files/2017-06/cabinet-manual-2017.pdf
• parliament.nz/en/pb/parliamentary-rules/standing-orders/
The Cabinet Manual provides guidance on the expectations of the conduct of Ministers, their
public duty, and personal interests. This includes identifying conflicts of interests, managing
their interactions with representatives from non-government or commercial organisations, as
well as the receipt of gifts and political party donations. You may be interested to note that
DPMC has advised that the Cabinet Manual is currently being updated, and that you may
wish to review the updated version when it is published. DPMC expects it wil be made
publicly available later this year.
Under the Standing Orders, Ministers and other MPs are also required to maintain a register
of their specified interests, by submitting a “return”. These returns are compiled by the
Registrar of Pecuniary and Other Specified Interests of Members of Parliament (the
Registrar) and published in a public register. The register can be viewed at:
• parliament.nz/en/mps-and-electorates/members-financial-interests/
The purpose of the register is to record MPs’ interests, providing transparency and
strengthening public trust and confidence in parliamentary processes and decision making.
By being open about their interests, members can protect themselves from accusations of
having a hidden conflict between their private interest and their public role. In turn, the
public can judge MPs’ actions against their known interests to reach an opinion about
whether a member has behaved appropriately. An MP who fails to comply with their
obligations may be held in contempt of the House.
Further, MPs who have a financial interest in business before the House are not disqualified
from participating in a debate on the matter, serving on a commit ee inquiring into it, or
voting on it. MPs must judge whether they should participate in any of these ways when they
have a financial interest in the outcome of parliamentary proceedings. However, before
participating in parliamentary business in which a member has a financial interest, they must
declare that interest to the House or committee. Failing to do so may be treated as a
contempt of the House. Interests already declared through the Register of Pecuniary and
Other Specified Interests do not have to be separately declared again.
Standing Orders also require MPs to disclose to the Registrar any gift received with an
estimated market value of more than a prescribed amount, while the rules regarding political
party donations are outlined in the Electoral Act 1993.
At the national level, these offences and guidelines are designed, in part, to prevent
corruption in the political system by making MPs aware of their responsibilities and by
criminalising corrupt behaviour and practices. There is also a regime at the local government
level to address similar issues and concerns. Key laws include, the Local Authorities
(Members’ Interests) Act 1968, the Local Government (Pecuniary Interests Register)
Amendment Act 2022, and the Local Electoral Act 2001.
Protective security requirements
The New Zealand Security Intelligence Service Protective Security Requirements Unit has
developed guidance to support elected officials to understand and protect themselves from
espionage and foreign interference threats. The guidance is available at:
• protectivesecurity.govt.nz/assets/Campaigns/PSR-ElectedOfficials-spreads.pdf
Criminal offences relating to bribery and corruption
A range of activities related to bribery and corruption are addressed under Part 6 of the
Crimes Act 1961. In particular, sections 100 to 105 of the Crimes Act 1961 make it an
offence (punishable to a term of imprisonment up to 7 years) to bribe, and for judicial
officials, Ministers, Members of Parliament, law enforcement officers and officials, to
undertake bribery or corruptly accept bribes.
It is also an offence to bribe foreign public officials in New Zealand and overseas, and for
foreign public officials in New Zealand (or outside of New Zealand if they ordinarily reside
here) to corruptly accept bribes or bribe officials.
Part 6 of the Crimes Act 1961 also includes offences for trading in influence with intent to
influence an official, and corrupt use of official information - including use or disclosure of
personal information obtained as part of the official information.
It is important to note that New Zealand’s anti-bribery and corruption regime also includes
several domestic offences housed within the Secret Commissions Act 1910, the Electoral
Act 1993, and the Protected Disclosures (Protection of Whistle-blowers) Act 2022. These
offences apply to everyone, including those involved in the political system, such as
members of parliament and local council employees.
The Serious Fraud Office and anti-corruption work
The Serious Fraud Office (SFO) is mandated to investigate and prosecute serious or
complex fraud, including bribery and corruption crimes that could undermine confidence in
the public sector or are of significant public interest. Charges that may be filed include
charges under the Secret Commissions Act 1910, and the Crimes Act 1961 (Part 6, sections
99 to 106 – crimes affecting the administration of law and justice). The SFO has provided the
following as examples of recent prosecutions it has undertaken under its mandate:
• Ongoing trial at High Court Christchurch – SFO charged Gerard Gallagher and
Simon Nikoloff with corrupt use of official information and attempting to corruptly use
official information under the Crimes Act 1961, in relation to their role as advisors at
the Canterbury Earthquake Recovery Authority.
• December 2022 – Vivek Goel was found guilty on 14 counts of corruption and bribery
of an official, four counts of corrupt use of official information, and two counts of
obtaining by deception under the Crimes Act 1961 in relation to his role as group
manager of district assets at Westland District Council. Mr Goel is awaiting
sentencing in March 2023. The charges relate to Mr Goel’s behaviour in accepting
cash bribes from his associates in exchange for awarding council contracts, where
he was responsible for 67% of the council’s spending between 2015 and 2017.
The SFO also leads a workstream in the Open Government Partnership Action Plan (OGP).
The OGP is a collaboration between the Public Service Commission, Transparency
International, and other civil society organisations to ensure transparency and accountability
in government. Further information on the SFO’s anti-corruption activities can be found in its
Annual Report here:
• sfo.govt.nz/assets/Uploads/Annual-Report-2022-Web.pdf
Anti-money laundering and countering the financing of terrorism
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act)
improves New Zealand’s safety by making it harder for criminals to profit from their offending
and disrupting the financing of terrorism. The AML/CFT Act helps ensure markets are not
distorted by il icit funds and helps to maintain integrity of financial institutions and professions
such as lawyers, accountants, and real estate agents. Also, it generates the largest and
most detailed financial intelligence available to the Government and law enforcement
agencies. This results in wide-ranging benefits, such as:
• enhancing national security
• combatting terrorism
• disrupting and dismantling serious and organised crime (including transnational
organised crime)
• protecting New Zealand from bribery, corruption, foreign interference, and
• restraining criminal assets.
The AML/CFT Act provides obligations and controls for foreign politically exposed persons
(PEPs). Due to their position and influence within governmental or international
organisations, PEPs can pose significant money laundering and terrorism financing risks.
PEPs may have control or influence over government expenditure and can therefore be
involved in corrupt activity, either of their own volition or because they have been targeted by
criminal networks. PEPs may also be vulnerable to foreign interference.
The Ministry of Justice recently reviewed the AML/CFT Act, resulting in a report to the
Minister of Justice in 2022 which is publicly available on the Ministry’s website at:
• justice.govt.nz/justice-sector-policy/key-initiatives/aml-cft/aml-cft-review/
The review made several recommendations in relation to PEPs, including that the definition
of PEP should be amended to include domestic PEPs. Cabinet agreed to the Ministry’s
proposals to progress the implementation of the review’s immediate recommendations, and
officials are conducting further policy work to progress medium-term and long-term changes,
including recommendations concerning PEPs. The Ministry is now consulting the public on
revised AML/CFT regulations as part of the review’s immediate recommendations.
New Zealand’s obligation to international corruption prevention
New Zealand is party to two international instruments in relation to corruption: the
Organisation for Economic Cooperation and Development (OECD) Convention of Combating
Bribery of Foreign Public Officials in International Business Transactions (the Anti-Bribery
Convention), and the United Nations Convention Against Corruption (the Convention).
The OECD Anti-Bribery Convention establishes legally binding standards to criminalise
bribery of foreign public officials in international business transactions and provides for a
host of related measures that make this effective.
The Convention is the only legally binding universal anti-corruption instrument. The
Convention's far-reaching approach and the mandatory character of many of its provisions
make it a unique tool for developing a comprehensive response to a global problem. The
Convention covers five main areas:
• preventive measures
• criminalisation and law enforcement
• international cooperation
• asset recovery, and
• technical assistance and information exchange.
The Convention covers many different forms of corruption, such as bribery, trading in
influence, abuse of functions, and various acts of corruption in the private sector.
New Zealand is an active participant in the work of these groups and takes part in mutual
evaluation mechanisms to ensure continual improvement. New Zealand is currently
undergoing its second cycle review under the Convention. The report for this review wil be
made publicly available once it is finalised. You can find further information here:
• unodc.org
The New Zealand Government has also made guidance on fraud and corruption for
businesses publicly available. This includes examples of fraud and corruption policies
businesses can implement. An example of such a policy can be viewed here:
• justice.govt.nz/assets/Example-of-Fraud-and-Corruption-Policy.pdf.
Supporting good governance is a priority for New Zealand’s International Development
Cooperation Programme. An important area of work is promoting transparency and
accountability, which includes supporting Pacific country-led anti-corruption efforts to
implement the UN Convention Against Corruption and the Teieniwa Vision, which is a Pacific
Islands Forum Leaders pledge to unite against corruption. You can find more information
about the Teieniwa Vision here:
• forumsec.org/wp-
content/uploads/2021/09/Teieniwa_Vision_PUAC_post_LEADERS.FINAL_.pdf
In the Pacific, we are supporting efforts to prevent corruption and promote transparency and
accountability in the political system. Our contributions involve strengthening the capacity
and capabilities of key institutions such as parliaments, election management bodies (EMB)
and judiciaries, and promoting citizen and civil society engagement in electoral processes.
We support advocacy for EMB independence, which is critical for ensuring transparency and
accountability. When invited, Aotearoa New Zealand has deployed observers for national
elections in the Pacific and beyond.
New Zealand participated in the 2021 Summit for Democracy and joined a group that
established the Global Network for Securing Electoral Integrity (GNSEI). GNSEI provides a
platform for our ongoing engagement to protect the integrity of elections. You can find more
information about the Summit for Democracy here: state.gov/summit-for-democracy/
If you require any further information, please contact Media & Social Media Manager Joe
Locke at [email address].
Please note that this response, with your personal details removed, may be published on the
Ministry website at: justice.govt.nz/about/official-information-act-requests/oia-responses/.
If you are not satisfied with this response, you have the right to make a complaint to the
Of ice of the Ombudsman under section 28(3) of the Act. The Office of the Ombudsman may
be contacted by email to [email address] or by phone on 0800 802 602.
Nāku noa, nā
Alida Mercuri
Acting General Manager – Criminal Justice Policy
